Pharmaceutical firms set to compete

Pharmaceutical firms set to compete

DIRECTOR GENERAL OF FOOD AND DRUG SUPERVISION
DR. H. SAMPOERNO, MBA

The Directorate General of Food and Drug Supervision (DITJEN
POM) is invested with a mission to protect the health of the
general public and enhance the quality and image of
medicine/pharmaceutical, food and cosmetic industries.

The Ministry of Health's Director General of Food and Drug
Supervision Dr. H. Sampoerno said: "Previously, this mission was
not touched upon by POM, but now I am more focused."

He acknowledged that the economic crisis hitting Indonesia has
had a negative effect on the pharmaceutical industry. It is
particularly felt here because materials used in the
pharmaceutical industry are imported. Consequently, prices have
risen. This has affected the ability of consumers to purchase
pharmaceuticals, with 80 million Indonesians now classified as
poor or living below the poverty line.

"It is the task of the government to rescue them," Sampoerno
said.

This can be done, he said, with the provision of subsidies to
them through the distribution of generic drugs, primarily through
public health services and pharmacies.

To meet this challenge, the government, through POM, is making
several endeavors, including:

* Seeking payment sources. For instance, the International
Development Bank will soon provide US$100 million. This loan is
in the form of profit-sharing, and POM will extend loans to
pharmaceutical companies which are healthy and have good
prospects.

* POM will provide prime services, such as through transparent
services and through full-export ventures.

Considering the standard and competitiveness of Indonesian-
produced pharmaceuticals, Sampoerno believed there are no other
problems.

"Our medicines conform to international standards," he said.

Indonesia's pharmaceutical firms are also required to step up
their competitiveness for the advent of free trade. The means is
through optimizing the resources the country possesses; Indonesia
must have products which are suitable domestically, regionally
and globally in order that they can be marketed overseas. "That
is our fundamental idea now," asserted Sampoerno.

In commenting on the readiness of local companies for the
dawning of a free market, Sampoerno acknowledged there were firms
which retained an orientation to the local or national markets.
However, many firms have made special preparations to compete in
the free market.

POM, in addition to providing development assistance, is
facilitating activities, including providing business permits to
sound firms. "And what is important is that previously, the
private sector was an object. Now we have made it a partner."

In this regard, the government has advised the national
pharmaceutical industry to set high product and quality
standards; possess a marketing strategy which is both locally and
globally oriented; create professional human resources; and
utilize domestic resources.

"If they don't, they will run into problems," Sampoerno added.

The government is also striving to create regulations and
deregulation for a conducive business climate, particularly in
improving the efficiency and ease of services and funding, in
addition to improving access to market information, both on a
national and global scale.

Sampoerno said people are starting to opt for generic drugs.
"And that is not a problem because generic drugs available now
can treat 80 percent of the medical conditions found in
Indonesia."